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Posted: August 21, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: 25TI014 - Resolution 2025-097

Agenda Item Title:

25TI014 - Resolution 2025-097 to Adopt a Project Plan for Sun Ridge Senior Affordable Housing

Origination Group:
Planning Commission
Origination Meeting Date:
08/21/2025
Stage 2 Group Name:
Legal & Finance Committee
Stage 2 Meeting Date:
08/27/2025
City Council Hearing Date:
09/02/2025
Petitioner:
Sun Ridge Apartments, LLP
Staff Contact:
Mike Dugan, Tax Increment Finance Planner
Location:
North of Omaha St., East of N 5th St., West of East Blvd N and South of North St.
Agenda Item Summary:
The applicant has submitted an application for a Tax Increment Financing District (TIFD) with $3,421,873 in proposed project costs; including financing and administrative costs. The purpose of the TIFD is to create a financing source for site improvements that would otherwise be infeasible through conventional debt sources. The TIF financing structure will allow the developer to construct 38 units of senior affordable housing and commit to maintaining long-term affordability. The developer is committed to maintaining affordability for at least 40 years. The term affordable housing can be defined as housing for income-qualifying tenants making 60% or less of Area Median Income (AMI) with corresponding rent at 30% of the tenants’ income. The term senior is defined by HUD as tenants aged 55 or older. The development will be located at a vacant lot on the 300 block of North Street. The improvements are expected to be completed by November 2026. The resolution to create the district was approved by the Planning Commission on 07/10/2025 and by the City Council on 07/21/2025. The resolution to adopt the project plan was denied by the Planning Commission at the 07/10/2025 meeting. This was mainly due to the district not paying off within the 20-year time frame per SDCL 11-9. The applicant originally requested the City finance the TIF loan at a rate of 5% fixed. The updated project plan now reflects the City financing the request at an interest rate of 3.5%. This will allow the request to pay off in full at year 20. The application was been updated to reflect the new interest rate. Due to a noticing error, this application is starting the approval process for the resolution to create the district and the resolution to adopt the project plan from the beginning. The proposed TIFD classification is Affordable Housing; which will not impose an additional school levy on all real property within the Rapid City Area Schools District, but instead be made up across the entirety of the State of South Dakota.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve
Origination Recommendation Notes:
Planning Commission Denied the Resolution 2025-097 to Adopt a Project Plan for Sun Ridge Senior Affordable Housing: 8/21/2025
Published in 2025 - PL Agenda Items
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